GLOBAL ANTITRUST REVIEW

96 To illustrate what an

96 To illustrate what an SRO is, an example in law is a bar association 97 . Similar organisations exist in many sectors, such as the American Medical Organisation in medicine or the National Association of Realtors in real estate sectors. 98 It is argued that the sharing economy could be regulated on the same principles as these organisation, with a mere supervision by the state or local authority in contrast to an extensive regulation. Both of the abovementioned concepts – either through governmental regulation or self-regulation – seem to be viable options for creating a workable legal framework for the sharing economy. To date, it is clear that regulators have struggled to adapt existing regulations to sharing platforms and that they face various challenges when it comes to the choice of the approach. 99 There is even an example of the bona fide initiative brought to the authorities by Airbnb, to regulate their business sector, which turned up against them – despite their “heavy hand in passing the legislation in the first place” 100 . Nonetheless, the sharing economy removes the need for regulation in many cases because of the expansion of the range of options and information available to consumers. 101 Consumer’s point of view is, therefore, important, and some argue that “application of outmoded regulatory regimes may actually harm consumers” 102 . In author’s view, consumers in the sharing economy are affected both directly – if their health, safety or consumer interests (arising from the contract law, i.e. contracts between consumers and providers concluded through online platforms) are jeopardised – and indirectly, as citizens, if the sharing economy is prone to tax evasion or it creates an unfair competition on the markets they are engaged with. 97 See more Judith L. Maute, Bar Associations, Self-Regulation and Consumer Protection: Whither Thou Goest? (2008) Journal of The Professional Lawyer 53. 98 Cohen and Sundararajan (n56) 125. 99 Vanessa Katz, Regulating the Sharing Economy (2015) 30(4) Berkeley Technology Law Journal, Annual Review, Article 18, 1067, p 1084; Goudin (n79) 1084ff. 100 After self-initiated call for better regulation, the Airbnb’s hometown legislator, San Francisco, imposed a complex registration procedure for hosts and $1,000 fine a day for every unregistered listing. See Biz Carson, Airbnb is a 'cautionary tale' on how not to work with governments, says Uber's political adviser, Business Insider UK (30 June 2016) accessed 24 July 2016. 101 Koopman, et al., The Sharing Economy and Consumer Protection Regulation: The Case for Policy Change (n93) 532. 102 ibid.

97 Consequently, to better illustrate the desirable central purpose of regulating the sharing economy, the position of consumers is examined below. 3. Consumers’ Perspective Maybe the central reason why the sharing economy enjoys a lenient treatment in the public is the fact that it serves a positive role in society. It is more efficient than traditional businesses, it allows microbusinesses to profit from existing resources and it has the potential to bring unforeseen benefits. 103 On the other hand, the suppliers of goods and services via sharing economy platforms often do not have to comply with many laws regulating traditional commercial suppliers. 104 The fact that there is no level playing field can cause various troubles for the consumers. As noticed by a group of prominent academics 105 , “the existing regulatory framework is primarily focused on ‘bipolar’ transactions between businesses and consumers” 106 . Such framework does not offer adequate solutions for the growing number of transactions between the platform, businesses (or individuals often not established as businesses) and consumers (i.e. a ‘triangular’ transaction) arising in the sharing economy. 107 It appears that a result of concluding contracts through online platforms is often a lack of effective consumer protection. The main issue of the EU consumer protection and the sharing economy seems to be the absence of addressing the relationship between the two peers – individuals (i.e. the supplier who is de lege not a business and the consumer) in a two-sided market. 108 It is also unclear whether a relationship between the platform and the consumer (i.e. a contract to which the platform is usually not a party to) falls under the scope of the EU consumer law directives. 109 Finally, 103 Stemler (n70) p 35; See also Robert Cooter, et al., The Importance of Law Promoting Innovation and Growth, in Rules for Growth: Promoting Innovation and Growth Through Legal Reform 1-2 (Ewing Marion Kauffman Foundation ed. 2011). 104 Lougher and Kalmanowicz (n53) 15. 105 Christoph Busch, Hans Schulte-Nölke, Aneta Wiewiórowska-Domagalska and Fryderyk Zoll, The Rise of the Platform Economy: A New Challenge for EU Consumer Law? (2016) 5(1) Journal of European Consumer and Market Law 3. 106 Busch, et al. (n105) 3. 107 ibid 4. 108 Cf. the critical remarks of the European Parliament resolution Towards a Digital Single Market Act, 19 January 2016, (2015/2147(INI)), paras 77-81. 109 Busch, et al. (n105) 4.

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